Canadian growth capital firm Clearco is to cut 125 jobs as it faces up to “significant headwinds” in the economy, becoming the latest fintech to feel the pinch.
In a company-wide memo, Clearco founders Michele Romanow and Andrew D’Souza cite rising interest rates, “the highest inflation in four decades”, big swings in the value of the Euro, a slowdown in e-commerce growth and supply chain issues as factors in the decision.
“The current macroeconomic environment looks very different today than it did in 2021,” the founders add.
Clearco was building “to match the growth of the economy”, but after assessing current market conditions and the uncertainty in the e-commerce sector, job cuts are now necessary to ensure the company maintains profitability, Romanow and D’Souza say.
Affected employees will be provided severance pay, expanded health coverage and job transition support, among other benefits.
The company is also considering “strategic options” for its international operations but anticipates it will weather the current economic storm. “We’ve grown this business countless times,” the founders say.
Clearco is the latest in a long line of fintechs and tech firms shedding employees as they adjust to the economic snapback of the post-pandemic era.
In recent months, stock trading app Robinhood has said it will cut 23% of staff, digital challenger bank Varo laid off 75 employees in order to cut costs and Canadian wealthtech Wealthsimple shed 12.6% of its workforce citing market volatility. Other firms such as we.trade have shut up shop entirely.
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